Question: What would be your dollar return had you purchased a single contract at the call premium when the SPY price was $464.72 and sold at
What would be your dollar return had you purchased a single contract at the call premium when the SPY price was $464.72 and sold at the expected call premium if the underlying SPY price increased to $490 (do not round the forecasted premium)?
Strike = 485, Last price = 4.64, Bid = 4.67, Ask = 4.72. The current price for SPY is $464.72. The implied volatility for this option is 11.23% per annum. The risk-free rate is 1% per annum.
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